Following a thorough discussion, the Cypriot Cabinet has given the green light for the ambitious Cyprus-Greece electrical interconnection project.

Energy Minister Giorgos Papadopoulos made the announcement from the Presidential Palace.

The final agreement is expected to be sealed during a meeting between Cypriot President Nikos Christodoulides and Greek Prime Minister Kyriakos Mitsotakis at the Maximos Mansion.

Once completed, the electrical cable will be the largest and deepest of its kind in the world. It will be 1,240 kilometers long and will be laid at a depth of 3,000 meters.

Mr. Papadopoulos mentioned that the project will contribute to eliminating Cyprus’s energy isolation as the national system will connect with the trans-European systems. He also stated that besides addressing the crucial issue of energy security, the project will ensure the economic development of the country.

The EU will finance the project with 657 million euros, while the annual recovery amount has been set at 25 million euros.

Specifically, with today’s decision, partial cost recovery for the implementing agency will start in 2025 and continue until December 2029. The recovery amount (25 million euros per year) will come from state funds, specifically from the emissions trading system. A supplementary budget will be submitted to the Cypriot Parliament for the first tranche, and consumers will not be directly burdened during the five-year construction period.

According to Cypriot media, if the interconnection is not completed by 2029, GSI funding will be suspended and will restart—at the consumers’ expense—once the project becomes operational. If ADMIE’s expenses during the 2025-2029 period exceed 125 million euros (which seems likely), the excess will be paid by consumers during the cable’s operation.

Finally, it should be noted that the Cabinet’s decision does not mention the participation of the Republic of Cyprus in the share capital of the Great Sea Interconnector, with 100 million euros.